Goldman Sachs warns of supply pressures in European economies

Goldman Sachs flagged rising supply-side pressures across Europe after flash PMI data showed the Euro Area composite PMI dropping to 48.6 (vs. 50.1 expected), signaling contracting activity and elevated risks to regional growth. The UK outperformed with a 52.0 composite PMI (vs. 49.8 expected), but both economies saw higher manufacturing input prices and longer supplier delivery times for a second consecutive month. Analysts noted price and delivery measures worsened more than activity, with firms front‑loading orders and building inventories ahead of expected price hikes and supply disruptions. Goldman says incoming economic data will be key to tracking the growth impact and disruptions tied to the ongoing energy shock. The update raises downside risk for European markets while highlighting uneven performance within the region.